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Continue ReadingLATEST INSIGHTS
Cases Cited In Professional Liability Monthly – October 15, 2009
Download Medical Mut. v. Indian Harbor
Download HSB Group v. SVB Underwriting
Download Harker v. Federal Ins.
Download Southwest Georgia v. Colonial
Download Fulton Bellows v. Federal
Download Landmark v. Reli Title
Download Nations First v. Tudor Ins.
Download Genzyme Corp v. Federal
Download Auto-Owners Ins. v. Lloyd's
Download Gambino v. American Guarantee
Download Weddington v. United National
Download Warren Hosp. v. American Cas.
Download Nationwide v. Garzone
Download Swedish American v. Sari Ins.
Download Stanford Order- Defense …
Continue ReadingSecond Circuit Remands $34 Million Jury Verdict Against Reinsurer Back to Lower Court to Address Which Claims Should Be Arbitrated
AXA Versicherung AG v. New Hampshire Insurance Co.
(2nd Cir. [NY] October 14, 2009)
An action was filed against a reinsurer relating to two reinsurance contracts. The plaintiff alleged that the reinsurer misrepresented or failed to disclose certain material facts in connection with the negotiation of these contracts and sued for intentional misrepresentation, negligent misrepresentation, material nondisclosure, and breach of the duty of utmost good faith. After an arbitration proceeding was stayed, the matter was tried before a jury in the …
Continue ReadingFirst Circuit Concludes That A Standard D&O Policy Is Triggered Only When Director or Officer is Named as Defendant
Medical Mutual Insurance Company of Maine v. Indian Harbor Insurance Company
(1 Cir. (Me.), October 8, 2009)
The CEO of the policyholder suffered a stroke, and shortly thereafter was ousted from his position. As a result, he filed complaints with the EEOC and his state's human rights commission claiming disabilty complaints Those resulted in "Right to Sue" letters.
In the ensuing legal proceeding, the former CEO named only the corporation as defendant, but he did allege wrongful conduct attributable to directors and officers. …
Continue ReadingEleventh Circuit Affirms That Crime Insurance Policy Was A Claims-Made Policy Precluding Policyholder From Aggregating Theft Claims Occurring Over Multiple Years and Multiple Policies.
PBSJ Corp. v. Federal Ins. Co.
(United States Court of Appeals, Eleventh Circuit, October 1, 2009)
Policyholder, PBSJ Corp., appealed the district court’s grant of summary judgment to insurer regarding the coverage owed under its policy for employee theft over multiple years. Policyholder purchased an insurance policy from insurer covering criminal acts, including employee theft for each year between 1992 and 2005 in the amount of $2 million. The policyholder sustained $42 million in losses due to employee theft during his period …
Continue ReadingDistrict Court Dismisses Insurer’s Claim that “Litigation Hold” Letter Consitutes Notice Under the Policy But Fails to Declare It Bad Faith
SNL Financial LC v. Philadelphia Insurance Co. (W.D. Vir. September 30, 2009)
Plaintiff commenced this declaratory judgment lawsuit seeking coverage of an underlying discrimination lawsuit pursuant to its employment practices liability insurance policy. Defendant denied the claim, arguing that plaintiff made material misrepresentations when plaintiff renewed the policy. Specifically, defendant argues that the "litigation hold" letter plaintiff received in which it was required to preserve all evidence relating to a possible discrimination lawsuit triggered its notice obligation under the policy and such information was material to …
Continue ReadingCaseWatch Insurance October 9, 2009 Edition Now Available
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Continue ReadingSecond Circuit Remands $34M Jury Verdict Against AIG
AXA Versicherung AG v. New Hampshire Ins. Co.
(S.D.N.Y. Oct. 6, 2009)
A federal judge remanded a $34 million jury verdict against AIG and its subsidiaries for fraudulent inducement involving reinsurance facilities. On appeal, AIG argued that the verdict could not stand because the plaintiff’s claims should have been arbitrated or, alternatively, that they should have been tried by the bench, not a jury. The plaintiff countered that AIG waived its right to arbitration. It also argued that a jury trial was appropriate because …
Continue ReadingCaseWatch: Insurance Cases for October 9, 2009 Issue
Download Accufleet, Inc. v. Hartford Fire Ins. Co.
Download Altimari v. Sun Life Assurance Co. of Canada
Download American Soc’y for Tech.-Israel Inst. of Tech. v. First Reliance Standard Life Ins. Co.
Download Baggett v. Automobile Association of America
Download Black v. Long Term Disability Insurance
Download Boggs v. Great Northern Ins. Co.
Download Celina Ins. Group. v. Yoder & Frey, Inc.
Continue ReadingInsurer Must Defend Insured In Alleged Organ-Harvesting Scheme
Nationwide Mutual Ins. Co. v. Garzone
(E.D. Penn, September 17, 2009)
In this declaratory judgment action, the insurer sought to have the court render a decision on whether or not it has a duty to defend and/or indemnify its policyholders, providers of crematory services, for underlying claims involving the policyholder’s selling of body parts for cash. The underlying claims alleged that the policyholders either intentionally or by their negligence participated in a scheme to harvest organs of deceased individuals without the consent of …
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